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tv   Markets Now  FOX Business  February 4, 2013 1:00pm-3:00pm EST

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dennis: the dow 14,000. we hardly knew you. i am not worried here. european meltdown, china slowdown, u.s. government shutdown. they are off the table.
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cheryl: let's forget about the market. let's talk about the super bowl. all of the ads. dennis: hominy cakes did it take for the nerd to get that shot right? melissa: it ruined my appetite which is what i needed at that point. lori: i love guys like that. that is my type. [ laughter ] melissa: i am speechless. i am melissa francis. lori: i am lori rothman. rbc wealth management ceo joins us on whether or not this pullback will last. melissa: is your wallet running on empty? consumers spend more on gasoline as a percentage on their income
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in nearly a decade. lori: the white house and action against china. let's get you updated on the market as we do every 15 minutes. nicole: you have to blame europe. let's take a look at the major market averages. you'll not see the dow 14,000. 13,887. that is a loss of nearly .9%. the tech heavy nasdaq is down one quarter of a percent. these were high levels that we have seen since october 2007. a lot of the bulls out there were really celebrating.
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the dollar is particularly strong today. it has been gaining momentum. i wanted to take a look at walmart. it downgraded today over at jpmorgan. the new price target is $75, down from $84. they talked about payroll tax increases. it is in a more competitive environment. the easy way for walmart is over. a little bit of a pullback is expected. back to you. melissa: thank you so much. a big month in january. we get to the bottom line with elizabeth macdonald. why is this? >> you have been talking about that great rotation. we have not seen a start like this in 15 years.
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in the month of january alone. it surpasses what happened all of last year combined for all four quarters. the bears have left the building. the s&p forward earnings that we are looking at are still cheap versus the october 27 peak. the s&p 500 was trading at 13. if it hits 14, then you are talking s&p 1600. if it hits 16, you are talking s&p 1700. are we setting up a classic bear trap? that stock has gotten ahead of the economic recovery. we are seeing the togo war on whether or not we will have a
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downdraft by end of year. melissa: who is winning? >> though bulls are winning for now. if there is a pullback there, you could be in a downdraft air up. melissa: thank you so much. lori: this has been the story of the markets, the dow finally closed above 14,000. that is the first time in about five years. we have been in the red most the day. will we see the highs of friday again or was that just a one-time thing? we are joined now by john taft. welcome to you. what are you advising your clients to do today with the pullback? >> i do not think that the advice has much to do with the pullback today. what we have been telling them is that they should get to their
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long-term asset allocation targets. we have been telling them that for a year. the market has moved substantially over the course of the last 15 months. we still, though, think that for investors who move in the wake of the financial crisis into assets that they think is safe, it makes sense to start gradually and carefully oversell playable. getting back to neutral. about 55% of the money in stocks, 40% bonds and 5% in cash. they are much more conservatively allocated bitmap. lori: what about people debating whether or not now is the right time to get into the market. we have this big milestone.
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then this big pullback today. some people will come on and say, well, buy in or hold out. what is your advice for people who may be a little gun shy right now. >> again, i would say for individual investors, the single worst mistake can be tying the market. i would tell investors this, look at what your long-term plan is. as far as asset allocations. look at what your goals are. if you do not have a plan, get one. we think that environment, for individual investors, in the u.s., is pretty healthy. lori: i have to come in here,
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john, we are discussing whether or not we are in a bear trap here. the equity inflows are huge for january. is it for real? a lot of criticism on the fed. if the market health for real? >> look at all the positive indications on the other side of the valley. you have accommodative central banks all around the world keeping interest rates low and doing everything they can to spur growth. banks are as healthy as they can be. you have energy costs going down. energy independence coming a reality in the united states. the housing market is bottoming on the u.s. china has new leadership in they are accommodating growth. all of those are positive indicators. lori: what are your -- >> we see them up. we have earned half of that now.
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let's not forget, we still have the triple witching power. we have to get through that before we can look at the market being on a sustained path. lori: we will have to leave it there, john. melissa: football, beer and loopholes. the president had to say this about reducing the deficit. >> there is no dow that we need additional revenue coupled with smart spending reductions in order to bring down our deficit. we can do it in a gradual way so it does not have a huge impact. the average person cannot take advantage of them. they do not have access to cayman islands account. the average person does not have
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access to carried interest income. melissa: i do not know, how do you interpret that. that sounds like the tax man is coming. lori: we have been talking about eliminating loopholes and tax deductions for a while. melissa: we have not done it. lori: right. but it is not a new proposal to the people. melissa: he tries to hide behind the wealthy people. it is coming for everybody. anyway, fighting back. we will introduce you to a man training the troops fighting the cyber war. lori: what happened last night. the super bowl in the dark for 33 minutes. we will shed some light on the situation. ♪ i'm a conservative investor.
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♪ lori: it is time to make a little money with charles payne. they be a lot of money. we are taking a look at humana. high food cost may be partially to blame. charles: their numbers speak their own guidance, which i think all of the way, they have gone into their own. i do like them. employers coming to it. it is cheap. love the chart. it is breaking a key resistance. obviously, well above that.
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technically, i think it has a lot of room to the upside. fundamentally, i think it is fairly valued. lori: you are looking to make money off of the pain and suffering that people undergo. melissa: if you have had the flu and suffered through it, you might as well make some money from it. charles: why not humana next. realistically, though, guys, i looked at it all different ways, there are still some question marks with respect to health care and how this plays out, i think there is no dow there will be this proverbial public private partnership and humana will play a big role. lori: thank you. as we do every 15 minutes, let's check the markets. nicole is on the floor of the new york stock exchange watching oracle in particular. nicole: it is murder monday.
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let's take a look here at oracle. obviously, a big name that we continue to follow. the acquirer in this deal is pulling back about 2.5% today. $1.7 billion in value. back to you. melissa: nicole, thank you so much. an abnormality in the system is what is being blamed for millions of people being left in the dark at the super bowl last night. it opened a breaker partially cutting off power to the superdome. escalators, credit card machines stopped. new orleans, which was hosting the first super bowl since 2002 and hurricane katrina, hope to show off how the city recovered. the mayor had called the power outage and unfortunate moment
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and what was other called a shining moment. "the service for the superdome was operating as normal." look at how shares of entergy are trading. not taking too big of a hit today. operating as normal. lori: i still do not understand the cause. that whole circuit breaker thing. melissa: beyoncé sucked up all the power with the lights and everything. lori: it is so funny, it seemed to be a boring game until the power went out. things got all re-energize. literally. melissa: sticker shock at the pump. we have someone weighing in on why they are concerned about the gas prices jump early in the year. lori: the dollar. kind of a mixed bag today. it is weaker against the dollar
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in the yen. we will be right back after this. ♪ >> announcer: you never know when, but thieves can steal your identity and turn your life upside down.
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>> @20 minutes past the hour, i have your fox news minute. president obama is taking his gun-control initiative on on the road. he is trying to gain support for his gun postals. minnesota has been studying ways to reduce gun violence. the national transportation safety board is heading to california to investigate the cause of sunday's tour bus crash that killed eight people. it happened near san bernardino. at least 40 people are injured. a government has been holding a 5-year-old boy for hostage for seven days now. they remain underground. the boy identified will turn six on wednesday. those are your headlines. back to lori. lori: what a sad story.
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thank you, lauren. herbalife issuing a statement confirming that the company is a subject of a law enforcement investigation. we are unaware of any other regulatory interest and or investigation. we, this is herbalife, are demanding a correction from the new york post. charlie gasparino will join us and have more on this. melissa: $3.52 per gallon nationwide geared that is $0.22 higher than just a month ago. we are also learning that the amount that the average u.s. household spent on gasoline reached nearly $3000 last year. that is 4% of income before taxes. that is the highest percentage
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in three decades with the exception of 2008. that is according to the department of energy. if you break all of that data down and translated into english, it is saying that the price has gone up while consumption by gallon has gone down. we are paying more of our income for gas than we have in three decades. that is depressing stuff. >> it is very depressing. it is like an invisible task on consumers where there was never a vote taken. this is not just new this year. this is the fifth year in a row where we have seen early pricing on crude oil drive higher gasoline prices, taking more money out of the consumers pocketbooks at a time when the economy needs recovery, not regression. this is a regressive tax on the american people.
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it hurts those that have the least the most. for five years i have been saying it is time for the u.s. government to grab hold of this problem and do something about it. melissa: they think that they have. they will point to the fact that consumption is down to the level it was in 2001. people are driving more fuel efficient cars. a lot of the reason for that, also is fewer people are employed in they cannot afford to drive as far. >> i think that is the real issue. people are cutting back because they do not want to spend so much money on driving. especially those that do not have a full-time job. this is not all the u.s. government fall. a big part of it is because we have no plan, policy or leadership. opec is responsible for the global crude oil price. melissa: what is the solution?
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natural gas for transportation? >> absolutely. we would increase natural gas production from around 65 billion to big feet a day of to about 90 billion cubic feet a day. 40% of that extra production could go to truck transportation, 60% to automobile and pick up transportation, we would compete with opec with one dollar a gallon wholesale ethanol for personal cars and could eat with compressed natural gas against four dollars diesel. melissa: we discovered fracking and it has become so popular. the problem is, the administration and most of those in power in washington are not in favor of using more natural gas. once again, it is a fossil fuel. do you think there is anything
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that would get the behind natural gas now? is there any chance that they will replace him with someone who is more friendly to natural gas? >> i certainly hope so, melissa. we now have five major openings for government appointees. they all touch energy. all of these jobs are open. we have nobody being appointed. somebody has to say, and i am happy to say it to the president, get with it, president obama. your people are paying too much for gasoline. melissa: john, i love your fire. thank you so much for coming on. we appreciate it. lori: this has to do with the role of the credit rating agencies before the financial crisis. they do plan to file civil
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charges against s&p. enforcement action is likely to focus on s&p mortgage bond rating model before 2008. remember s&p rated any of those junk bonds, aaa when in fact they were based on subprime mortgages. that was the origination that many will report to for the credit crisis. again, this will be the first crisis related enforcement action by the u.s. against a credit rating firm. it comes after a breakdown in settlement talks. they could take action against s&p this week. this all comes to us from dow jones. barbarians at the cyber gates. fresh attacks on the nation's largest newspapers and now can't even twitter. melissa: a shortage of qualified workers hurting the pentagon's efforts. we will introduce you to a man
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training the next generation of cyber security experts. ♪
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melissa: time now for stocks. as we do every 15 minutes, let's head to the floor of the new york stock exchange. nicole petallides is standing by. what are you watching right now? >> i'm looking at both the market and merck on a day where you have the drug index lower. the markets overall, dow jones industrials are below 14,000 which we hit on friday. today we're sitting at 13,891. so all three major averages are pulling back indeed. we're taking a look at
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merck. at this post it is down over 2%. it is one of the worst performers on the dow. it was cut at morgan stanley, bmo. i will delve into the morgan stanley a little bit. they're worried about the drug study on vytorin will fail. so it is likely to pull back if that is the case. back to you. melissa: nicole, thank you. lori: recent cyber attacks on major u.s. countries has the white house weighing tougher action against china. peter barnes in d.c. all fingers pointing at china, huh, peter? >> reporter: that's right, lori. a new government intelligence report expected to be released is expected to call rising chinese cyber attacks a threat to the u.s. and its economy. it is coming after the "washington post", "the new york times", "the wall street journal" all announced attacks on their computer systems suspected coming from china. social media sight twitter said friday, extremely sophisticated hackers from an unidentified location may
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have stolen user names, e-mail addresses and passwords from 250,000 customers. the u.s. has made little progress in negotiations with china to stop the hacking which it denies it is behind. experts say that governments and companies have to play nor defense. >> if we start to do a better job having a better plan, training users to be better making sure we understand these vulnerability we can at least solve that which is within our realm to solve, once you get beyond that, into political and legal and diplomatic. >> reporter: now the u.s. is considering new economic and diplomatic steps to fight chinese hacking. according to "the financial times" that will include more information sharing between washington and private companies to protect critical systems and infrastructure like power grids and communication systems. administration officials won't comment on their cybersecurity plans. lori? lori: so china won't negotiate on this, huh? peter, thank you. >> reporter: yeah. okay. melissa: will the latest
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string of cyber attacks we were just talking about prompt the pentagon to add thousands of new employees to the u.s. cyber command? experts are are concerned there are not enough qualified people to fight the cyber war. we have the director of research with the sands institute a cyber training school. welcome to the show. the government wants to hire up to 4,000 workers. are they available a the level they need? are those people out there. >> there are a lot of people who call themselves cybersecurity workers but only a few thousand in the whole country that have the kind of advanced skills you need to fight off the chinese attacks. what is happening is the government contractors are stealing them from the government and contractors are stealing from each other and banks are stealing them from the contractors. there just aren't enough in the country. melissa: so it sounds like, there are a couple of problems here. one i imagine if jpmorgan or goldman sachs is stealing something from the government they're able to pay them hundreds of thousands of dollars versus
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if you go to work for the government, it has to be, research, a 40 or $50,000 a year job. seems like how would the government ever get a single employee if the wage disparity is that great? >> government actually has something to offer the banks don't have. that it is legal to do things when you're a government employee that you can't do anywhere else. and the mission, the mission of the defense department, the mission of nsa, the mission of the fbi, those are real missions that people are proud to serve. so as long as they're paid enough, they will stay if the mission is good and if they get good management. you can keep an enormous number of people in the government, if the management is good and the mission is good. we just don't have enough to fill the job. melissa: we're a financial network. so we focus on the dollars first. >> right. melissa: given what you just said. you talk to the people and train them every day. are there enough people to fill the government's rolls. >> there aren't. let me go back to your money, if they're four or five years into their career and trying to buy a house and they don't feel like they have any money in their government roles they can be
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pulled out but, you're right, the finances are 40 to $50,000 more in that middle career slot outside the government than inside the government. long-term, a government career is pretty good career in cybersecurity. then your question about not enough people, right? melissa: well, it sounds like there are plenty of these jobs all around the country. we have people who are in need of jobs. how do you train for something like this? >> you have a different kind of training program than the training programs you've been doing. a lot of programs for cyber people are academic programs where people go to class and they have people talk to them about cybersecurity. cybersecurity is more like piloting a plane. you can get a little bit good at it but you take thousands of hours of stick time on an airplane to be a great fighter pilot. security people are exactly the same way. with a few hours you can talk about it. with a few hundred hours you can do it at a pedestrian level. but the people we need have a thousand hours or more of training in simulators, time
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in simulators just like pilots. melissa: so are people funneling into that industry then? are they beginning to get that experience? are they out there or do they not know these jobs exist? where is the hold back? >> the holdback is that there haven't been good simulators and hasn't been a lot of good online, i'm sorry, hand on training for a long time. just in the last three or four years the air force has pioneered in developing simulators and training programs that have a lot of hand-on work. now, we and others are taking air force learning and spreading it so banks get same people and hospitals get the same people and rest of government get those people. melissa: so interesting. alan, thanks for coming on. >> you're welcome. lori: and what's in a name? blackberry making its debut under a new ticker on the nasdaq. we'll look you who the stock is trading and why one analyst is upbeat at least for the short term. melissa: forget walking the runways. maybe the real money is just sitting there.
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new york city gearing up for fashion week. we'll tell you how much celebrities are earning just to watch. ♪ . [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade.
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>> i'm lori rothman with your fox business brief. a weaker than expected report on factory orders weighing on the stock market today. the government said orders rose 1.8% in november from december. economists were looking for an increase of 2.2%. you also had the key 14,000 level hit by the dow. that might also have something to do with our selloff here. shares of clorox holding on to their gains in an otherwise down market. the company's second quarter profit beat the estimate and raised its full year sales forecast. charles says people were disinfecting to prevent the flu. u.s. and state prosecutors plan to file civil charges against s&p according to dow jones. enforcement action will likely focus on s&p's mortgage bond rating model before 2008. this would be the first crisis related enforcement action in the u.s. against a credit rating firm. several other state attorneys general could take action this week according to dow jones. that is the latest from fox
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business, giving you the power to prosper
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lori: herbalife shares are down today on reports of a ftc investigation which may or may not be true. fox business senior correspondent charlie gasparino is here with breaking news. >> one of those reports basically said that in getting an foi request about some request about stuff going on herbalife, in the foi request they were talking about an regulatory information. by the way --. melissa: you're good. you got it all straight. >> when the markets assumed that was the f it tc investigation everybody is talking about which could lead, which would give credence to what bill ackman is saying the famous short seller, this is a pyramid scheme and the ftc will close it down the i will point out herbalife itself came out with a statement saying they don't know of any ftc investigation. they know of no major regulatory investigation. and i will tell you this. in explaining itself the ftc
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in this foy. foi request it used broad language. so this battle continues. herbalife came out with a pretty specific statement. the statement was reviewed by david boies, their outside counsel. emphatically saying there is no ftc investigation. the stock as you know is off, it was down dramatically, i think something like 10% today. it is only down 4% last i looked. it was a lot on our reports that herbalife would come out with news that it doesn't believe it is under investigation. if you're the average guy at home, i will just say this. stay away from this stock. i don't give stock advice but this thing moves like, if someone sneezes the wrong way this stock will move. by the way it is only down, it is coming back. it is only down 97 cents now. that is interesting. the stock is actually coming back. that's what i mean with this thing. it is a morass of trouble. you will see reports going
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both ways. you have bill ackman out there, who is a guy that likes to plant stories with reporters. that is what short sellers do. he has a short on this thing. you have the company out there. this company has been around for a long time but there are questions about its business model. i'm not saying this is good or bad. i'm saying watch out. this thing, if you like to day trade it's a great company to play around with, but, man, if you're a long-term investor this is not something you want to be in. you will be whipsawed from now. one thing about ackman, i will say this, i have known him for a while. he stays in a stock a long time. he first attacked the bond insurer mbia. melissa: right. he wasn't giving up. >> giving up. he acted it and mbi imploded in 2008. it is still around. just a shell of itself for not the reasons he said they were bad for. just so you know that. but does have kind of a good nose for stuff and the company i can tell you has been very adamant. went out and hired major
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advisors, both legal and financial. ken mullins is their financial advisor, i would say one of the best investment banking advisory firms. david boies, as you know, a long time earn attorney. they are coming with "the a-team." this is something small investors should stay out. we'll be covering this. the stock will move up and down every day. melissa: with regard to today's news because you see so many of these things develop and how they smell out of the gate. what is your takeaway? what do you think is it going on? given how the stock is performing and what the company said and given all the initial news, put it all together, what do you think is going on? >> here's the thing, if ira company like herbalife and being advised by david boies and comes out with as strong a statement, sounds like there is ftc investigation here, it's, i think --. melissa: maybe that is why we're seeing sellers back off. >> by the way there could be an investigation. if you read the foi request, all this started, a reporter
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issued an foi request, wanted various things, complaints about herbalife. their complaints are nothing totally out of the ordinary. they had 36 complaints last year filed with the ftc. this year they have 38. that is not a tremendous amount. companies get lots and lots of complaints. the ftc investigates companies with hundreds of complaints that is not blown away. they're on track for 38 if you look at first quarter complaint tally. i looked at the numbers last week, i didn't think it was that dramatic. but inside the letter that the ftc sent this reporter it said, they talked about how they redacted some stuff because of an investigation. the markets assumed that meant an ftc investigation. i will tell you this, if you read the section that allows them to redark of the foi act under the, that the ftc has they can redark if the dog catcher has an investigation. lori: got it. >> they did not specify. lori: okay. >> take it for what it is worth.
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i'm not saying either side is wrong. telling you what the company report said. melissa: got it. >> if i was a long-term investor, i would be out of there. this would be crazy. melissa: charlie gasparino, thanks so much. it is quarter to. as we do effort 15 minutes let's check the markets. nicole petallides on the floor of the new york stock exchange, with black -- blackberry, formerly known as rim. >> it is official. the stock has gained 13%. up 12.7%. blackberry 10 has been the latest and greatest from blackberry. we're hearing from the analyst this morning at bernstein raising their rating to market perform to outperform. new price target of $22 up from $12. he said it can not make a sustained comeback and should get a nice rollout in march and april. you're seeing the stock on the move. melissa: nicole, thanks so
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much. lori: after her megawatt performance at the super bowl, beyonce is likely off to new york city to make cold hard cash. more of it, for just sitting? that's right. i said sitting. new york's fashion week starts wednesday. the a-list stars like beyonce and gwyneth paltrow, get thousands of to sit in the front row. they look like they're having fun? melissa: no they look bored. lori: stars like jessica biel and a leash is a keys can rake in 60 grand for a 15 minute show. other stars can take home 10,000. what do you think?. >>? melissa: i think they list them, a, b, c, d, list. how do you move up the strata? very hard for me to think that beyonce would show up for $100,000. pepsi is paying her $50 million. she is pretty busy.
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the whole inauguration -- part of that whole 50 billion thing with pepsi. lori: got it. melissa: will she really show? i don't think she will get out of bed for $100,000. you pay taxes on that. $10,000 a day. i don't get out of bed for less than --. lori: linda evangelista. here is my angry list? do you have an angry list? melissa: i love that. never compete with that. that's fabulous. what does your cell phone say about you? the ftc cracking down on those tracking you. privacy concerns ahead. lori: we love bruce springsteen, with apologies to him. there wasn't much dancing in the dark. the super bowl blackout lighting up twitter. winners and losers as well from nasdaq as we head off to break. [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals,
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melissa: the ftc pushing for privacy controls for the growing mobile industry as more and more americans use their smartphones to connect to the internet. shibani joshi joins us now with the details on this one. shibani. >> hi, there, melissa. yeah, the ftc is calling this the new wild, wild, west. the explosion of smartphones and cell phones of all various mobile types is creating all sorts of security concerns on the same note. now the ftc came out with a new note and a new report over the weekend talking about the security concerns and for good reasons. they did some research and dug into the numbers. in fact, 57% of all americans and app users out there, smartphone users uninstilled or declined to install apps because of personal information concerns.
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on top of that about a third of all americans feel they don't have a good handle of the information that mobile devices have access to. as a result, they were making some very specific recommendations to some very specific smartphone makers, naming in particular amazon, apple, blackberry and many, many more in this research note that they made some formal suggestions in the way of consumer disclosures. even perhaps do not track program. and even explicit consent before accessing things like your geo location and other private data. melissa, the ftc is not doing this any sort of binding way. there is no penalty if you don't do this as a smartphone maker. it says it makes plain good sense a lot of sense right now and they're possibly evaluating more formal measures a little later on down the road. a little bit of a positive suggestion. take it for what you will. melissa: interesting. thank so much. lori: last night's super
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bowl was the most watched event in tv history. the first reading on the game's ratings came in whopping 48.1 and a 71 share. that is in america's biggest cities. it was also the most tweeted super bowl of all time. really how long have we been doing that? more tweets were at the start of the second half than last year's entire game. there were approximately 24 million tweets in this year's game compared to 13.7 million tweets in last year's super bowl. the rate of tweeting spiked during the blackout. what else were you supposed to do with nearly 4,000 tweets per second during that period. i was at the mall. i didn't see kickoff. i was happy to have the whole food court to myself. melissa: it was empty. you weren't watching and --. lori: primo parking spot. melissa: i love that. lori: i did watch some of the game. were you tweeting during the game? jo no. you pile a million people into a room and all screaming at the same time no one listening. i took a break from
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tweeting. i will save a little space. lori: there is social pressure. someone else is always funnier and more sarcastic on the tweet. melissa: not me. you set that up for me. coming up tonight on "money", dick bove, bank analyst at after fertty capital markets. lori: does charlie know? melissa: don't tell charlie. why he is bold on bank stocks. that is the 15th year. when he predicts the 1th year run in banks. i want to know what happens after that. that is 5:00 p.m. eastern here on fox business. you don't want to miss it. lori: we won't. this is breaking news. the department of justice and state prosecutors may be nearing charges against s&p. what may be the first crisis related action against a credit rating firm. ash and trace have it for you next.
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tracy:. tracy: happy monday, i'm tracy byrnes. ashley: is there a happy monday? not on wall street, that's for sure. i'm ashley webster. stocks pulling back from five-year highs. europe's debt crisis and political mess of some countries making its way back to the front lines, hurding the dow. the dow is off 124 points at this hour. raymond james chief investment strategist jeff saut says the market is absolutely overbought. tracy: you've been talking about how europe is many coming back to haunt us. chinese hackers infiltrating companies. one ceos says not if companies will be hacked but when. martin resch is here. ashley: state prosecutors filing civil charges against standard & poor's rating unit alleging wrongdoing in rating financial bonds before the financial crisis. mcgraw-hill dropping on that rao's news.
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tracy: dow is down 125 points, nicole. >> we are under pressure here, tracy and ashley. a different picture than when we saw dow 14,000. we saw five-year highs. october 2007. today a different story. we're pulling back. the dollar is strong. concerns about europe and concerns about some of our economic news that came in a little lighter than expected for factory orders, for example. we are seeing the majority of the dow components lower. drug stocks, retail stocks, bank stocks, oil, transports all lower. oil services are all lower today. look at a trio of names on the dow jones industrials hit with downgrades. we'll look at retailer wal-mart downgraded over at jpmorgan with a new price target. cut from the $75 to $84. downgraded from neutral to overweight. keeping an eye on chevron, another name downgraded, that was over at ubs. ubs cut it to a neutral from a buy. merck is large percentage loser. there it is at 40.99.
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cut to underweight from equal weight. we are keeping eye on these three names in the particular but most of the names on the dow are lower being. back to you. tracy: thank you, nicole. we'll see you in 15 minutes. ashley: more on this breaking news. u.s. and state prosecutors about to file civil charges against standard & poor's for its ratings on mortgage bonds just before the financial crisis. that question is like, what five years ago now? rich edson has the latest. >> sources with knowledge of the situation confirmed with fox a "wall street journal" report that the justice department and state prosecutors intend to file civil charges against standard & poor's ratings services the sources say the government will allege wrongdoing in its rating of mortgage bonds in the lead-up to the financial crisis. sources say federal and state officials are expected to file the lawsuits as early as this week. s&p is a division of mcgraw-hill. sources say the charges come following lengthy settlement talks between the ratings
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agency and the justice department. under examination for many years here is the widely criticized issuer pays credit model investment banks create the product. pay investment ratings agencies to rate it and. justice department and mcgraw-hill failed to respond immediately to requests for comment. going forward there are investors who are looking to recoup losses during the financial crisis claiming that some of these ratings were fraudulent because of that model. though the ratings agency always maintained under their first amendment right they can rate it any way they want it and customers can believe it as such. back to you. tracy: rich edson, thanks very much. we were saying we could see in the offices next door, to see what is going on, right? ashley: that's right. tracy: our next guest says we'll have a five to 7% correction to the buying stampede after the president's state of the union address next week. joining us, jeff saut, chief investment strategist at raymond james. jeff, glad to have you here.
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a lot of people are saying this market's overbought and you're saying hold out, here comes state of the union, watch out below? >> well, the market is overbought. it is overbought by a number riesch shows. percentage of stocks above their 50-day moving averages about as many as you ever see. that is overbought. the new york stock exchange, the oscillator is overbought and i don't think you will get a big letdown right here. i think the markets will shake off this little weakness we got today or tomorrow and try to confirm the transportation average which broke out to new all-time highs mid-month last month. i think the dow will try to confirm that with a new all-time high into the state of the union which i think is going to be viewed negatively by the markets. at that point i think you're sub wreck to a five to 7% pullback. -- subject. ashley: jeff ironically here for the first time in a while had negative headlines out of europe. the politics looking rather messy in italy and spain as
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well. here we are, down 122 points. are you concerned of the impact if europe comes back with all the negative headlines in the new year? >> i mean europe is going to be an ongoing problem. you saw that the euro quake word disappeared from the media's lexicon for a while. it surfaced again this weekend. but it is the same thing i've been saying ashley, for the past two years, politicians, bureaucrats, and bankers are the same in europe as they are inside the d.c. beltway. they do not want to lose their jobs. if the e.u. implodes they all lose their jobs. they will continue to paper over this thing and try to buy more time. ashley: yeah. tracy: take it back to here at home. let's play this out for people. state of the union comes, market falls off. should i make a shopping list of things to buy when it does. >> yeah. i think that is a real good strategy. we've been fairly constructive. i came in, i got into a slight argument with one of the anchors here coming into one of the fiscal cliffs talking about armageddon. i advised it would not be armageddon.
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i lived inside the beltway. when push comes to shove the boys and girls typically come together. i think they will do the same thing on the upcoming debt ceiling and sequestration. ashley: so if we do have this pullback after the state of the union, jeff, what sectors or stocks in particular do you like? >> i actually like all the sectors except the consumer staples. a lot of portfolio managers, professional money has been hiding out in the consumer staples because they were worried about the upcoming election, the fiscal cliff, the debt ceiling, china slowing, you name it, dysfunctional government. now it has become more apparent our dysfunctional government has become a little bit less dysfunctional i think investors will start to have to look at the fundamentals. i think the fundamentals with the housing situation, the automobile strength i think it is going to come to the fore. tracy: i hope you're right, jeff saut, with raymond james. thank you very much, sir. >> you bet. ashley: jeff says when
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housing is healthy and automobile industry is healthy that's always a good sign for a solid recovery. tracy: he is not wrong, right? they do kumbaya at the last minute. ashley: good way of putting it. coming up why the problems with boeing's dreamliner might mean big bucks for the airbus. tracy: first as we do every day at this time of day let's look how oil is trading. it is down almost 1 1/2% today, $96.38 a barrel. we'll be right back.
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money, you know, it is one of these place that is really coming on. it has been coming on for a long time as a matter of fact,. ashley: yeah. >> news out today on foreign direct investment which slowed all around the world last year. they had a new fund that was up 74%. a lot of money pouring into that country. the majority of it, 712% going into manufacturing. give you an example, nike. we always talk about nike making sneakers in china. the fact of the matter is in 2011 they made more sneakers in vietnam than because of china. ashley: just because it is cheaper? >> just because it is cheaper. the vietnamese manufacturers are telling these guys, we like you. get your act together. they have issues with respect to tax policies. if they could clean those up they could do very well. they themselves have competition. myanmar and cambodia giving them competition. if they tweak the tax policies a little bit this is an area that will continue to do very, very well. tracy: you can just buy -- >> vnm. it is.
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really liquid. i think you could make 20% this year. ashley: wow. >> it is one of the things if you can get over your sort of bad issue, whatever. i think by now most of us can. then i think it might be a real good place to look around the world outside from this country. ashley: from a business standpoint it is attractive. >> absolutely. ashley: thank you very good. charles payne. >> you look fantastic, tracy. red is good for you. tracy: thank you, charles. $10. ashley: there you go. tracy: as boeing races to get the 787 dreamliner to get in flight, airbus landed a massive order for its version of the jumbo jet. california based air lease corp. much purchased, 25, a350, wxb passenger jests and 14 other planes. the price tack, nearly $7.5 billion. the a350 is expected to make its first flight this summer and could be in service late next year.
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boeing customer, japan airlines, it wants to talk to boeing about getting compensation for the dreamliner safety issues. you into that was coming. ashley: yep. tracy: the plane has been grounded around the world for three weeks after a series of problems with its batteries. boeing shares are down 4% from their 52-week high that they hit just before the dreamliner was grounded. you were saying earlier, you were waiting to hear competitors would make money. ashley: absolutely. especially airbus which is in such competition with boeing. boeing is still highly regarded, don't get me wrong. airbus doesn't have a battery issue that grounds its planes. tracy: that's all you need to make money. ashley: order a plane you can't fly it you start to look elsewhere. as the clock tick it is gets worse and worse for boeing. they have to figure out exactly how to do that to fix it. tracy: a little scary. ashley: nearly quarter past the hour. time to check the markets. nicole petallides on the floor of the nyse. nicole, down, triple digits. you're looking at some of the major movers. >> that's right. let's look at some major movers here on a day where we have down arrows across
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the board, ashley and tracy. let's start off with blackberry. this is one we continue to watch. bernstein changing its rating to outperform. we're seeing the stock jumping 12.3%. that is a huge move. this stock was $6.22 back in september of 2012. they have gotten out the new blackberry 10. they think we could see a jump on the launch, the real launch. we had the introduction. when it really hits the stores in the march and april. continue to watch that. shares have been dropping. it is down 6% here. when you think television stations online newspapers, et cetera, it is down 6.3%. we are looking at numbers. quarterly profit dropped 12%. with restructuring charges and beat the estimates. investor sentiment is to the downside on this one. it is down 6.3% for gannett. tracy byrnes, i'm going to concur and agree with charles payne, you do look fantastic today. tracy: oh, you're good. ashley: red is your color, trace. no doubt about it. thank you, nicole.
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we'll be back with nicole in 15 minutes. tracy: now i'm really red. coming up american businesses are under attack and our next guest says companies must assume it is a matter of when, not if they are going to be hacked. ashley: that is a frightening point. look how the u.s. dollar is moving against the major currencies. well, the euro down against the dollar but the pound up. somewhat of a mixed day. the euro at one point hitting 136. we'll be right back. my mother made the best toffee in the world.
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>> 18 minutes past the hour i'm lauren green with your fox news minute. former cuban leader fidel castro is praising venezuela president hugo chavez for his contribution to latin america. castro says chavez is one of the people who have done more for freedom. he spoke sunday after voting. venezuela's shauf spread is in -- chavez is in cuba getting cancer treatment. the national transportation safety board is heading to california to investigate the crash that killed people. at least 40 people are injured. in alabama, it is now seven days that a gunman has been holding a 5-year-old boy hostage in a bunker. police say 65-year-old jimmy lee dykes shot and killed a school bus driver, took the boy and remains underground
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with him. boy identified only as ethan will turn six wednesday. those are your headlines. now back to ashley. ashley: fox's lauren green. lauren, thanks so much. another big week on tap for earnings with big consumer names from yum! brands to royal caribbean and clorox. that is a big name right there. tracy: everybody needs bleach. ashley: sandra smith looking up bleach and so much more in today's trade. sandra. >> tracy's right everybody needs bleach. now more than ever with this flu epidemic everybody is out there buying disinfectant wipes and everything that clorox makes to try to clean floors and the counters. clorox had a spectacular quarter. look at the stock. now topping 80 bucks. this is an all-time high for clorox. the stock has been on a roll. their sales were up. their profits were up 17% in the latest quarter. bucking the trend of a lot of forward-looking things from companies that we've heard, they have put a rosier forecast out for 2013. that stock is really taking
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off. they reported earlier. but after the bell tonight may be a different story. while clorox is surging higher, yum! brands actually down 1.5%. this is also a stock that has taken quite a hit so far this year as you can see. it has been pretty much straight down. january any capital and basically came out and said they think the big concern will be china. slow down in china will affect yum! brands. this is your kfc, taco bell brands. all the fast-food companies they own, a lot of them are over in china. they count on a lot of those sales for their overall profits. about 60% as a matter of fact. so yum brands after the bell tonight and tracy and ashley, i will join david and liz for those earnings after the bell. you never know, they could surprise but it just appears all those emerging markets they were depending on for so long, they're slowing down and that -- all the bears have been piling on here in the last day of trading. ashley: not for bleach though. >> not for bleach. everybody is cleaning up. tracy: you must use bleach.
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ashley: absolutely. sandra, thank you. >> thank you. tracy: more politically motivated hackings of u.s. companies. "the new york times", "wall street journal", and "the washington post" all latest victims. so have we entered into a new era of cyberterrorism? martin resch, source fire founder and interim ceo is here how we can protect against it. is this now the new cyberterrorism, political cyberterrorism? >> well, you know, cyberterrorism is, that's a pretty broad term i guess and, a lot of it is politically motivated these days, weather attacks from anonymous trying to score political points or the chinese government needs to try to track down sources of information feeding these news stories out of places like "the washington post" or "the new york times". tracy: right. >> so it is certainly is a big motivator these days. tracy: it's scary because that means they're spying on us. so you're saying just assume you're going to be hacked at some point if you haven't
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been already. what do you do to guard against this? >> well, what i like to go in, when i go in and start talking to people about security, one of the points i like to bring up to kind of get them to start thinking a little bit outside of the box is, would you do security differently if you knew you were going to be hacked? really people need to start thinking about it in those terms because quite frankly the posture that they, they have in terms of defending their environments or organizations just isn't up to the task these days. tracy: that is the thing. the methods we have are old. these firewalls are useless. nothing's working. so i'm a company. i'm nervous about this. what do i do? >> you need to start looking at some new offerings out there certainly. there's a lot of development going on in younger companies and some of the older companies around techniques for combating advanced malware as we call it and dealing with not just thinking about security in terms of preventing the attacks from happening in the first place but be able to deal with the attacks once they're inside.
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the fact of the matter is if you get compromised you need just a good of a set of tools to figure out what happened to do something about it as you thought you had to prevent it in the first place. tracy: seems very hindsight though. do you think the government should be more involved in this or should we strictly leave it to private companies? >> i think there should be a mix. there should be information-sharing between the government and private companies. the private companies are really pushing the envelope in terms of coming up with brand new methods for dealing with attackers where with the government you have broad visibility and a lot of math in terms of people you can bring it bear on these problems. you know as i have seen earlier on your network today, talking about the fact that there just aren't enough people to man the parapits basically. tracy: right. >> so we have to think about this very intelligently. tracy: right. do we go hire hackers? where are we going to find people smarter than the hackers? i'm going to guess if you're hacking into a system you're pretty darn smart? >> well, right. and a lot of it is very financially motivated at the
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end of the day. you have people who are there for idea lodge consider call reasons -- idealogical reasons, the once doing attacks against "the new york times", for example, they're being paid. once profit motive gets involved. and train the good guys to pay them as well as you train the bad guys or have bad guys be self-motivated, certainly it is possible to get out there but the challenge is that the education that needs to be given to these people to be effective at countering the hackers is a very in depth technical education. tracy: right. >> and people need to get, to get taught up, basically. tracy: yeah. right. we need staff to teach these people as well. you know, quickly, you said earlier cyberterrorism, really big broad term. i mean, we could be talking about somebody attacking our country and just shutting wall street down or shutting the lights off on everything all together. how do you guard against that? >> well, there's a lot of interdepend den sis between the systems but there is also a lot of safeguards between the systems. i think having a wholesale
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shutdown of wall street or the entire electric grid is still fairly difficult it achieve, at least for any long periods of time. so a lot of these organizations that are, that face, that are critical infrastructure, that face these sorts of problems, they're already working with the government. they have been identified and they are in these partnerships with government to make sure that they're doing the right things so that they can't be taken down wholesale and leaving us all in the dark. tracy: martin, thank you very, very much. >> thank you. ashley: wasn't hackers at the super bowl last night, talking about shutting power down. tracy: you're absolutely right. i did, i was at a party, i walked around and how come i'm the openly one thinks that is terrorism? ashley: that was not my first thought. i hate to be, you know --. tracy: just the wires are loose. ashley: mardi gras, a little loose. we'll see. we don't even know, do we? tracy: no, we don't. ashley: we'll find out next. almost cost the ravens the game.
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latest vick tim of the financial crisis and why so many individual investors are fed up and getting out of the stock market. gerri willis is next with the latest. tracy: first let's take a look at some of today's winners and losers on the s&p 500 as we head out to break. dow is down 30. netflix up top, 5%. we'll be right back. all stations come over to mission a for a final go.
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is connecting today's leading companies to places beyond it. siemens. answers. but that doesn't mean i don't want to make money.stor. i love making money. i try to be smart with my investments. i also try to keep my costs down. what's your plan? ishare low cost and tax efficient. find out why nine out of ten large professial investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares f a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. >> half past the hour, the dow 30 as we head towards nicole at the nyc. the dow off 113 points. cisco and boeing in the green. the rest? well, a sea of red, isn't it? united health group unchanged.
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nicole on the nysc and what she's feeling, nicole? >> absolutely. a top story, breaking news, looking at mcgraw hill, s&p, standard and poors, a sub subsiy of mcgraw hill. the s&p now, looking at this because u.s. and state prosecutors plan to file charges against standard and poors rating unit alleging wrong doing before the financial crisis according to the "wall street journal," and s&p says the lawsuit is unfactual or legal merit. this is, obviously, shaping up to be one that will be intense. we watched the stock on the move. in the meantime, take a look at the dow jones industrials, down 13, 895, up from the lows of the day. the other major averages low r on the day where you see drug stocks, retail stocks, bank stocks. banks are under a lot of pressure. we're sigh seeing names like
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merck as win of the biggest lieuers. it's a market under pressure. concerns about europe weighed on the markets. hit 14 thousands last friday; right? five year highs, and worried about europe again, and dollar is higher. back to you. >> could it comeback again? any -- nicole, appreciate it. >> that's a movie in the making, don't you think in >> ongoing movie. >> exactly. the dow surged and topped 14,000 in five years, the journal notes another casualty. investment clubs. we have the story on that. i remember when they were hot. >> hot for a long time, but now membership is down, and down dramatically. thousands of people have let -- in 2012, 400,000 members. you pull the money together, invest, as a club, you agree how
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to invest the money, hence, maybe, some of the problems. no doubt is how they traded overred last several year, and 23 you go down the street and asked people how the market were doing, boy, they are bad. people don't understand what's happened in the country, that the markets turned, turned hard, on the upswing, not the down swing. >> financial prices is a hard thing to erase from people. >> when you lost your retirement, it's difficult to forgive, forget, and move on and get back in the marges. there's a lot to face because of insider trading, the flash crash. people don't trust the markets r and they need to because we need the markets to retire, send our kids to college. >> right. >> what's going to change? >> social security absolutely -- it's absolutely necessary they funk well op our behalf, not just the traders right now. those are not the people we should be serving right now. >> what's it going to take to
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get people back? >> a great question. i think -- >> faith? >> you know, you don't even see day traders right now. look at the market in the last few months this way, back to 14,000. we were there five years ago. should be more; right? >> yeah. >> we need more. out performance for a long period of time drives it. no doubt. people will get back on board. the question is how long does it take, will they trust it and get out at the first sign of trouble? >> exactly. on tonight at 6 and 9 p.m. eastern. >> michael reagan talks about reid's idea on raising more taxes. >> i'm sure there's a lot to say on california too. thank you very much. >> a great segue. does the government need more tax rev -- revenue to cut the deficit? no doubt, says president obama. the judge calls it theft.
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he's here next. >> as we do every day at this time of day. let's take a look at the 10-and 30-year treasuries as we head to break. we'll be right back. ♪ this is $100,000.
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we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally. ♪ >> this is requester fox business brief. stocks under pressure as of dow closed above 14,000 friday, a weaker than expected factory orders report drags down the
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market. the government says it orders rows 1.8% in december versus a forecast of 2.2%. we'll look out for numbers of yum brands after the close today. the parent company of taco bell, kfc, and pizza hut is expected a profit of 11 cents a share on $4.1 billion. prepare for fish mcbites. mcdonald's offers them as the first new happy meal in over a decade. they say fish mcbites for sale starting this week. i'll try if you will. that's the latest from fox business giving you the power to prosper. ♪
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>> break break news, a down day for oil.
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it's more than 1.5% on profit taking today. >> outer. well, we've talked about this, equity fund inflows hitting dolt-com era levels. the highest gain since 2000. liz, coming back, huh? >> that's right, tracy and ashley. factoring in atfs in the number, we're talking january 1996. we have not seen fund inflows like this in since january 1996, and that's well before former fed chairman alan greenspan made the exuberant remarks. that's 5 # 1.7 billion comparing to a net outflow for last year of negative 18 billion bucks. we are seeing the debate on wall street that the s&p 500 is really cheap versus october 27 levels. it's now trading at 13 times earnings, back in october 27th, trading at 15 times earnings.
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talking those levels for the dow to -- excuse me, s&p trading on 15 times forward earnings, that's an s&p of 1700. if it's 14, that's an s&p of 1600. the worry is it's a bear trap for a billion investors that we may see a retracement here that the stocks got highway of themselves begin the poor economic results that we're seeing, generally speaking. again, the best start though in the markets in over 15 years, and so what we're talking about, too, is the big debate on wall street, and that is if the fed -- if the insiders at the fed say, hey, wait a second, dial back on monetary easing, you could see a downdraft in the markets about that because the fed balance sheet, guys, is set to break the $3 trillion mark for the first time ever by the end of the month, triple what it was when lee man brothers hit the -- lehman brothers hit the fan in
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2008. the global markets, by the way, are setting decent highs right now. we have not seen all 18 global markets acting in concert since 2009. ashley spaletta -- ashley: i wonder how much came at the end of last year to beat the higher tax rates, how much of that money was generated into the equities. >> that's a great question. in other words, dividend reinvestments. sending the stocks across the board. we're essentially seeing a decent run up again in the 18 global indexes. what the buzz is on wall street, with 18 global index sighs moving higher in concert, that's a bullish read. in 2003, there was a four year bull run. there could be a downdraft mid year, though. that's the debate on wall street. tracy: good stuff. i hope people listen to you and come back to this market. >> sure.
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ashley: in separate interviews sunday, both president obama and harry reid called for more revenue, only meaning one thing, higher taxes. this, of course, comes on the heels of an unexpected economic contraction in the fourth quarter and a rise in the unemployment rate. joining me now, fox news' senior judicial analyst. >> smiling because i'm happy to be here, but hard to smile with more taxes. didn't we just give him all the taxes he asked for a month or so ago? this is a mentality that believes in redistricting wealth. we're seeing the president at his most progressive capital "p" as jfk and woodrow wilson after the inaugural address. seems to me and those who watch this for a living that he's determined to imprint a big government brand of government
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into the fabric of federal law, even more than he attempted to do in the first administration. tracy: to call taxes slavery, that leads people to believe they don't have to pay them. >> if you believe the only legitimate commercial transaction is a voluntary one, then you can argue that taxes are theft and slavery because it's -- i'm not talking about taxes to defend us. i'm not talking about taxes to pay for the police who protect us or the military who keeps us free and independent from a foreign monster that want to take us over, i'm talking about -- >> to pay off bills? >> no, no, about taxes that are for odd things, not authorized by the constitution like entitlements, like social security, like medicare, like medicaid. it's simply not there. we never concepted to a federal government that could take wealth from us to redistribute it. we can send it to a federal government that could take wealth from us to do certain things from defending the
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concept -- >> the tax code is a political book of favors. i mean, i'm in favor of junking it and starting over, but that's not going to happen. what do you do? >> it's not going to happen in this political environment. it only happens if people think as we do that we don't -- that the income tax should be invalidated and the federal government should be forced to live within its means as it did before there was an income tax or if the income tax days, the federal government should not be permitted to borrow and we should be forced to live within its means. the republicans in the congress have the numerical ability to stop the federal government from borrowing. do they have the political courage? probably not. ashley: is grows and grows a grows, judge, it really does, and it's to a point the money we pay for the services, the services are awful. >> look, at this rate, this rate of borrowing, our debts will be 21 trillion dollars by the end of this current term of the presidency.
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that's close to a trillion a year in interest payments. that's almost a third of what's collected in taxes. the rest goes to entitlements before you fund the state department or the defense department or the department of justice. the government exists on borrowed time and borrowed cash. how much longer can that live? ashley: not long. tracy: we're going to have a power outage soon. lights are going out. maybe shy should. >> ashley: thank you, judge. >> you're welcome. tracy: nicole, emergencier monday, isn't it? >> that's right. early $2 billion deal for you. take a look at oracle and acne. oracle down 2.8%, the acquirer, at a 22% premium, and not ironically, they are up 22% on the nose here for the deal.
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acne manages data flow across the internet, competes with cisco. this helping oracle to compete with cisco. there's a nice one year chart for you. we have seen, obviously, oracle shares edging lower on the news. as far as the tech heavy nasdaq, down 1.1%, and s&p 500 at 1500. back to you. >> see you at the top of the hour. the dow's coming back a little bit. a little. >> trying, anyway, a multimillion dollar super bowl battle off the field. forget about the game, which was great, by the way, who won the ad war? we'll tell you next. tracy: first, a look at today's winners and losers on the nasdaq. dow down 100 points, and rangold up almost 3%. we'll be right back. ♪
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ashley: despite warnings of o bond bubble, more money stocking into bond funds. where's the opportunities in fixed income? let's bring in the funds portfolio manager, vice president at eaton vance. thank you so much for joining us. we've been hearing about the bond bubble for so long, goldman sachs says be prepared for a bond market explosion. bill gross saying that he's calling for a credit super nova. why is now a good time to start a bond fund? >> now is not the easiest time
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to start a bond fund, but it is a good time to start a multisector fund, one in which you're able to be flexible with the different fixed income sectors that you're focused on. clearly, rates are low and not sustainable here, and at some point when rates start rising, investors are going to want to have a lot of tools to navigate choppy markets. ashley: the challenge is finding the right bonds at the right price. what criteria do you use? how do you do that? >> you want good credit. it's a good time to be taking credit risk. you want to make sure the bond you own has very little sensitivity to interest rates, so that means looking at bonds that might have more equity-lick characteristics such as convertibles or floating rate bank loans which have very little duration risk, and you're able to take credit risk there. there are many options to consider at this point.
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ashley: you know, the feds writing $80 billion checks every month, which i guess is just keeping this bond bubble if it exists inflated. does that put you off long term bonds. look at the interimmediate bonds? >> i look for bonds in different manyturety types. -- maturity types. for example, a technology company or a cyclical credit that's more levered to good cash flow if the economy recovers. interimmediate term bonds, if you're a little bit more concerned about rates moving up, and very often in the high yield market, that tends to be the tenor of those bonds. ashley: what about the more higher yield corporate bonds. do you like that sector? >> that sector is a little bit worrying in that we've seen
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tremendous amount of flows into bond funds. everyone's looking for a little bit more yield. that's caused to be the absolute level of yields to come way down, even in corporate, and i would say you take on a little too much interest rate risk for the higher quality bonds. ashley: the talk of amount of money going into the stock market, what's your take on that? there are others saying a lot of that money is from those special dividends that was handed out at the end of last year, and there's still an awful lot of money in bonds. >> there is an awful lot of money in bonds. i think since 2006, a trillion-four came into bond funds, and mainly plain vanilla funds with the overall exposure of governments and high quality corporates. even last year, 250 billion. the flows have been strong. i think it's going to take quite a shock for investors to realize
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that once interest rates start moved up, you're going to look at negative returns. that's the message they need to take to heart right now. >> very good. we'll leave it there. kathleen with eaton vance. thank you so much. when do interest rates go up? maybe not in the near future, but it's hanging out there. tracy: feels like it is; right? the super bowl, the lights went out, but it didn't hurt ratings. it was thee most watched super bowl ever. i thought people would change the channel at halftime. with all the eyes glued to the tv, average highs, dennis kneale has a look at last night's winners and losers. >> nevermind whether the ravens deserved to win, who won the ad war? not in the minds of media pundits, but the eyes of consumers who watched the ads. research firm surveyed thousands of consumers last night. here's what it found.
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a baby horse and a goat was the biggest winner as well as the oprah jeep commercial, worst, the gross makeout session for go daddy were the worst. they surveyed 500 randomly selected people for each ad. the responses are proexpwrectble to the nation -- projectable to the nation as a whole based on like the, whether the ads were informative, and the winner was the baby horse, a minute long boy loves horse story that built the brand and barely showed beer at all. that ad scoring a 655 out of a 950, the perfect score on the 8th scale. that's milk run ad, a coke ad known as a security camera shows things happening on grainy securities rather than bad stuff. jeep up there as well. look here.
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a consumer created spot for doritos ranked as one of the most popular ads as well in the super bowl. it caps several years of top rattings for dorritos. now the gross or mistargetted. now, a calvin cline ad had a score of 362 out of 950, one of the worst ratings a firm has ever seen, narrow target, clashed with too broad an audience, just depressed me. i'll never have that body. there's a horrifying ad for go daddy, not just the geek kiss, but the sound effects of the face sucking. now, is that just discussing or what? overall, the ceo tells us that this year super bowl ads were a
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tepid crop, not nearly as creative or funny as last years, and occasionally a lot more gross. tracy? tracy: oh -- ashley spaletta i -- ashley: i was eating then had to put my food down. why did we have to play that? tracy: i was in a room full of people and didn't hear that detail. thanks to the producer for getting that. ashley: dennis, thank you so much. whole foods ceo is talking about the organic growth taking place at the super market chain, and something called conscious capitalism. "countdown to the closing bell" is next. ♪
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